The Dark Reality of Online Betting | Stock Market of Beginners | Harsh Goela

Sonu Kumar Yadav! A 19-year-old migrant worker from Jharkhand. He got married but was unemployed. So, he shifted to Hyderabad. He got addictive to online betting in Hyderabad. He lost big amount of money. So much so that he committed suicide. With IPL season, online betting started rising. Today, In this video, we'll discuss "The Dark Side of Online betting in our country." Hi Guys, My name is Harsh Goela. I am an Investor, Trainer and Mentor in Stock Markets. Recently, I watched a youtube video of Wise where an ex-employee of this betting company, he was telling about the shocking things that happen in this industry. He also shared that callers get call from customers regarding their lost money and were in position to commit suicide. Callers used to reject that call. Why do they want their money back? It was very shocking and I highly recommend to watch that video after watching this one. It opened my mind. Then I thought that I should research in this . And I need to study it, then, I and my team everybody researched and we have got really shocking things. Before, we proceed to the video, I am giving you disclaimer in the beginning. Any of the apps which I mention I am not against any of them as I have not used them personally, all this depend on research and I am sharing this internet research with you. Alright! Isn't the gambling illegal in India? We all hearing this from childhood. We all think that Gambling is illegal in India. How do these online betting apps operating? and why? How is the law allowing them? So, Indian law about Gambling is very confusing & it's subject to personal interpretation. Every person perceive it in a different way. So, I'll tell you what the law is. The law says that if you are playing a game of stakes(money) and if it is a game of chance then it will be referred to Gambling. If you are putting stake and winning by chance, then it is complete Gambling. Let me give you an example. It used to happen in Delhi during Diwali festival. I am referring to 2015-16 & before that. During Diwali, a game was played that is Lucky7 and what was it? A stall used to be installed with a chart paper Chart has 3 sections, below 7 (numbers below 7), in middle Lucky 7 and then above 7. then two dice were rolled in a glass. you would bet by choosing one of these sections. then Glass will be flipped & the number which came, if it's below, your money will be doubled. if it's above, your money will be doubled or it came in lucky 7, your money will be tripled. So, it's game of chance & probability. So, in the eyes of the law, it is complete gambling. Alright! One more statement is there in the law that if a game of stakes is being played which is skill based but not chance or luck based then it is not a gambling. So, you'll see the ruling of Supreme court that Horse racing is not gambling,why? horse racing is a skill based game, you should be aware of turf, which horse performed better and their history, which jokey is the best and it's skill based, so, Supreme court doesn't consider it gambling. 2nd is holding Poker or Teen Patti, supreme court doesn't consider it as gambling, why? as it is skill based. How is it skill based? If you're playing poker or teen patti you should have the ability to analyze the cards to read the cards, to do a bluff & it's a skill based game. So, it is also not a gambling. Now, you would be furious at me. you think poker & such games are gambling, this is a fact my friend, we can't use our personal interpretation & law's interpretation matters. Under the constitution and law we live. So, what does the law says, we have to agree to it. This is why all such online betting apps allowed. Why? as they are categorized as skill based. Not chance based. But many of the state governments disagree to it. So, Andhra Pradesh, Telangana, Tamil Nadu and Punjab have imposed ban on such apps. The week has printed the following statement: "40% of the internet users in India are gambling & if it continues then we will overtake UK's members per capita. So, there comes a sudden rise in it. 2nd question comes that suddenly How does online gambling get popularize? There are three specific reasons for that. 1st is Unemployment. Stats says that majority of youth in our country are not Employable as MBA, B.Tech programs not given them skills enough to get employed. So, they see this as an opportunity. 2nd reason is Pandemic. due to pandemic, low wage or migrant workers all of them attracted to such apps as it seems as an easy source of income & they see a fake dream, of earning a lot of money. the 3rd reason is that Heavy Advertising. When you scroll down youtube, you yourself sees or google or in IPL, every mobile gambling app can be seen, you can see them on internet. You'll saw stories such that one has earned 3 Lakh or 6 Lakh rupees but the fact is one in Lakhs, one or two are able to make money . and this is also being endorsed by some of the biggest movie stars in the country. A huge amount of money is spent in advertisement , you'll be inclined to such apps automatically This is the reason why apps like Dr*am11, M*L, Te*nPa**i, Rum*yCir*le, P*ker these apps have reached at gigantic heights in our country. Now, let's talk about what is the problem with such apps? Problem is that these apps are very addictive, their algorithm is designed in such a way that whether two players are using stakes, whether they win or loose, most of the money is made by these apps themselves. Now, here comes a gambling bias. that changes psychological trades & you stuck with it. Let me tell you what the gamblers bias is. Let say, in my family, there is a ritual of playing cards for some time is a good sign. As it is said that Goddess Laxmi comes with diwali. Playing cards is supposed to be a good sign. Whenever you have played a card game with stakes or you have done any sort of gambling then you will notice one thing always. when start gambling for the first time. You'll start with a little amount of money. That money will be so less that winning or loosing that money will not matter to you. It can be 10, 100 or 1000 rupees for you. You will put that much money if you loose it will not bother you. Untill that time, you remain in logical senses. like whether you should play or quit. Alright! Now, problem comes at a stage where you increase your own stake in the gamble. You start thinking emotionally not logically. It's like that you are having a gut feeling of win and you would win for sure, and this is known as Gambler's bias. How many you would have seen on Diwali, if some people are playing cards, when playing with a little amount, it'll not matter to them. But ones someone loose big amount, then you'll start putting in more stakes. You start playing emotionally i.e. on gut feeling. You think that you'll win this time. This Gambler's bias also happen in stock markets. Various new Traders come in and put a little amount in starting without any strategy or knowledge and 90% chances are of loosing or get break-in as their confidence build up a little bit. When they put a large amount, graph decline fast. As they don't play with strategy but on gut feeling. Stock will go up tomorrow. This is Gambler's Bias. This is the main problem with such apps. This set algorithm is applied not only on the Indian apps but has been applied world wide. The same algorithm is set for worldwide. People get trapped due to this & as I had told you the story about Sonu Kumar Yadav. You search online in India, there are hundreds of the same stories like this where people trapped in gambler's bias, and invested a lot of money and this habit gone very far from fun and enjoyment. Eventually, these people started doing crimes. As they are not left with any other option. Adding to this, Home minister of Andhra Pradesh MC Chitranjan quoted according to the quint "Online Gambling induce criminal behavior and increase organized crimes and money laundering. As the person which get trapped in this has not left with any other option. To make sure that he get out of losses, and to get out of losses, he completely go deeper in that dark circle. and the more concerning thing is that every apps have a disclaimer that you minimum age should be 18 years But their is no body or no proper framework which checks whether people who are gambling are 18 above & I have got no data but the reality is that there can be several people below 18 years who are very active on such apps. The final problem is that KPMG India in September 2019, published a report which says that by 2024, the Indian Gambling Industry would be worth $250.3 Billion. You can think how much money is their in this world. How does Indian government is loosing in this? Indian government is losing because they are missing out on tax revenue of $1.5 million annually, why? because there is no proper tax policy for such apps. Am I saying that these online gambling apps are bad? No. They are under the law, they are legal. So, we have no right to say whether they are wrong. 2nd point, people active in such apps are wrong? No, it's a democratic country and it's their right to do as they wish, that's fine under the law. It is right. Problems comes at a stage where people are unaware of psychological shift in them. and they should be very clear if you use these app then yes there should be a limit for fun & games but if you over-induce above a limit, it has a very dark reality. if you think this is right! but do people lost money in stock markets? In reality, gambler's bias is present everywhere. You watch this video, how this gentlemen lost lakhs of money in stock markets, you'll go crazy.